In December, the Tax Cuts and Jobs Act was passed by Congress and signed into law by the president. This legislation is the most comprehensive reform of the tax code in more than three decades and includes various policy changes whose outcome would provide tax relief for U.S. businesses and encourage long-term economic growth.
The highlights of the legislation include major reductions in individual, business and corporate tax rates as well as the removal (or reform) of a number of incentives to offset rate reductions. However, the Research and Development Tax Credit is slated to remain. This federal incentive provides immense value to U.S. businesses and has helped to promote a more competitive and innovative American economy.
“I commend our elected officials for looking for solutions that will strengthen U.S. businesses and expand economic opportunities for all Americans,” said alliantgroup CEO Dhaval Jadav. “I’m especially heartened to see that the bill keeps in place the R&D Tax Credit. We have seen first-hand at alliantgroup how critical the R&D Tax Credit has been in helping businesses grow, create jobs and remain competitive and innovative.”